Do I need public liability insurance?

Why the work description matters

Treat the quotation questions as part of buying the cover, not as a formality to get through quickly. An unclear answer is better queried before payment.

Public liability normally centres on accidental injury to other people and accidental damage to their property. It does not make every loss connected with a job recoverable.

The points most likely to change the insurance answer include: a client will not let you start without a certificate; your stall or event booking asks for a cover limit; and a minor mistake could cause expensive damage. A familiar accident can still fall outside a policy. Use these examples to check what has actually been quoted.

A few minutes with your diary, invoices and contracts should help you confirm: who you work for and what their contract asks for; whether you ever work away from your own premises; and the worst credible injury or damage from one job. Keep a copy of the completed answers with the documents that follow.

Read the schedule and endorsements when they arrive. They may contain restrictions that do not appear on the certificate. Keep written answers with the quotation so they can be found later.

The risks hidden in an ordinary job

A quotation should take account of points such as these:

• A client will not let you start without a certificate
• Your stall or event booking asks for a cover limit
• A minor mistake could cause expensive damage

They are examples rather than promises of cover. The insurer will still examine what happened and what the policy says.

Put “a client will not let you start without a certificate” into the setting where it could really happen. Who would be nearby, whose property might be affected and what part of the work could lead to the incident?

Now compare it with “your stall or event booking asks for a cover limit”. A product, employee, vehicle or piece of advice may bring a different type of cover into the discussion.

Recent invoices and diary entries are a sensible check. They may remind you of occasional jobs that a broad trade label misses.

Information the provider may need

Have the following information ready before you begin:

• Who you work for and what their contract asks for
• Whether you ever work away from your own premises
• The worst credible injury or damage from one job

“who you work for and what their contract asks for”, “whether you ever work away from your own premises” and “the worst credible injury or damage from one job” help turn a broad occupation label into a useful account of the business. Check them before starting the form and explain anything that does not fit a simple menu choice.

This record is useful at renewal as well. It shows what was declared and makes changes in the business easier to identify.

Two reminders from this page are “do not confuse “not always required by law” with “not useful”” and “check contracts before choosing a limit”; keep them beside the documents when you check the quotation. If the policy takes a different approach to “who you work for and what their contract asks for”, ask about it before the cover is needed and retain any written reply.

Look for mistakes as soon as the documents arrive, especially in the business name and activity description.

Questions for the provider

• Do not confuse “not always required by law” with “not useful”
• Check contracts before choosing a limit
• Employees create a separate employers’ liability question

An endorsement can change the standard wording. Check every endorsement listed on the schedule.

Before the next job starts

Read any special terms added for the activity, site or method of work. Decide whether the precautions are realistic for every relevant job.

Do this while the details are fresh. It is much harder to reconstruct an answer after somebody has complained.

Finally, make sure the business could follow every stated precaution on a busy day. If a condition does not fit the way the work is carried out, ask about it. Ignoring an impractical condition is not a safe solution.

The final note for this particular subject concerns: employees create a separate employers’ liability question; check how this affects the jobs you accept and ask for clarification if the policy takes a different approach.